@kmsiler There are a couple of issues here. You said the band sold merch “in the states.” Where are you located? For now I’m going to base my answer assuming you file US Taxes. If not, the none of this might apply to you.
First, since you allowed someone else to use your Square account for sales, these are considered your sales. There is no way to change that after the fact. Because Square accounts are attached to one business entity, there is no legal way to say “some sales are for me, and others are for this person.” Also, If those sales the band made were in a place that has sales tax requirements, you will have to be the person who files and remits taxes for those sales. That’s the not so great news.
A possible way for you to do what you want to do (to exclude these sales from yours) is to set up the band as a 1099 Contractor using their tax information. Then you can “pay” them the amount of the gross sales that they used your account to ring up. That should (see the next paragraph) allow you to take the deduction for that amount and would give you the same tax effect.
But before you do this, you should check with your tax preparer or a trusted tax professional to be sure you know how you should properly book this so as not to raise red flags with anyone. You’re in a sort of gray area here from what I can see, and good advice is worth the cost. But I am pretty sure Square can’t help you at all with this. The moment you allowed someone else to use your Square account, you were committed to being the sales agent.
Chip A.
Square Expert & Innovator and member of the Square Champions group. (But NOT a Square employee, just a seller like you)
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